Letters to the Editor - March 19, 2013

Published: Monday, March 18, 2013 at 10:11 p.m.

Last Modified: Monday, March 18, 2013 at 10:11 p.m.

Free market not always the solution

Paul Ryan proposes to transform Medicare to a voucher program. The fact that his plan allows seniors to choose between the current Medicare and the voucher program is actually a false choice. The underlying assumption is that sick seniors will be able to procure insurance in the private sector at a premium they can afford with the voucher allowance.

To test this notion, I suggest seniors with serious medical conditions see if any insurance company will insure them now at any price let alone a price they can afford.

What will inevitably happen is the sickest seniors will choose to remain in existing Medicare resulting in ever increasing medical costs in that program causing its ultimate collapse.

The underlying strategy in Ryan’s plan is the eventual destruction of Medicare.

If we really want to reduce the deficit and lower health care costs there are meaningful steps that can be taken to control the greed that is pervasive in our health care system.

Tort reform to enable reduction in malpractice insurance premiums and corresponding reductions in medical provider fees, higher deductibles for higher-income patients, regulatory controls on the absurd cost of prescription drugs, laboratory fees and medical scans are just a few.

Absent some kind of regulation these things will not happen in the free market; if they could we would not be in our current situation.

Steven Donatone, Hampstead

The Fair Tax is right on

A recent submission by Fred Walker on the Fair Tax Bill tells it like it is. Too many people do not fully understand the provisions of HR-25.

Yes, it is a consumption tax that will charge a 23 percent tax to every new item purchased. At the same time it will remove an embedded tax of about 22 percent people are paying right now, on everything they purchase.

Under HR-25, there is no tax on used items. The prebate, which everyone will receive, on a monthly basis, is an important feature which will cover taxes paid on essential items, such as food, etc.

… The premise is that this bill, when passed, would be revenue neutral - that is it will provide enough revenue to cover existing taxes, including Social Security and Medicare.

If you are working, you will take your full pay home to spend as you see fit. Your employer will no longer have to contribute to Social Security for you or your fellow co-workers.

President Obama mentioned tax reform for a simpler system, during his State of the Union Address, as well as during speeches in his second campaign. So far, there has not been much said on the subject.

There are a few states, which use consumption taxes instead of an income tax. Florida is one such state. Everyone who visits Florida pays the tax as soon as they buy a T-shirt or a hot dog.

We can make HR-25 a federal method of taxation by urging our senators and representatives to support this great way to collect taxes.

The provisions are simple to read and simple to understand, and are available, for anyone interested online.

Stan Skiba, Leland

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